WB optimistic regarding China GDP growth prospects

Emerging Markets Economy, Nov 9, 2004

East Asia's economies are growing at their quickest pace since before the financial crisis with fewer people than ever living in extreme poverty.

According to the latest East Asia and Pacific Regional Update, the World Bank's twice-yearly look at the region's economies, economic growth is set to top 7 percent for East Asia and Pacific.

For China, the World Bank projects that, with underlying inflationary pressures expected to remain limited, drastic macroeconomic measures to cool down the economy are unlikely to be imminent, and if the economy lands at all, it is likely to be a soft landing. Fears of a hard landing also remain limited in light of continued strong demand indicators in recent months. The World Bank expects GDP growth to ease to 9 percent for 2004 as a whole and around 8 percent in 2005.